Prudential Financial (PRU) & AEGON (AEG) Head to Head Comparison

AEGON (NYSE: AEG) and Prudential Financial (NYSE:PRU) are both large-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, analyst recommendations, dividends, risk, institutional ownership, profitability and valuation.

Earnings & Valuation

This table compares AEGON and Prudential Financial’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AEGON $37.25 billion 0.37 $483.58 million $0.99 6.84
Prudential Financial $51.57 billion 0.96 $4.37 billion $9.94 11.80

Prudential Financial has higher revenue and earnings than AEGON. AEGON is trading at a lower price-to-earnings ratio than Prudential Financial, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

AEGON has a beta of 1.48, indicating that its share price is 48% more volatile than the S&P 500. Comparatively, Prudential Financial has a beta of 1.5, indicating that its share price is 50% more volatile than the S&P 500.

Profitability

This table compares AEGON and Prudential Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AEGON 5.64% 6.60% 0.39%
Prudential Financial 7.71% 9.51% 0.57%

Analyst Ratings

This is a summary of current recommendations for AEGON and Prudential Financial, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AEGON 0 2 0 0 2.00
Prudential Financial 0 6 8 0 2.57

AEGON presently has a consensus price target of $4.60, indicating a potential downside of 32.05%. Prudential Financial has a consensus price target of $119.08, indicating a potential upside of 1.49%. Given Prudential Financial’s stronger consensus rating and higher possible upside, analysts plainly believe Prudential Financial is more favorable than AEGON.

Institutional & Insider Ownership

10.1% of AEGON shares are held by institutional investors. Comparatively, 64.6% of Prudential Financial shares are held by institutional investors. 0.7% of Prudential Financial shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

AEGON pays an annual dividend of $0.25 per share and has a dividend yield of 3.7%. Prudential Financial pays an annual dividend of $3.00 per share and has a dividend yield of 2.6%. AEGON pays out 25.3% of its earnings in the form of a dividend. Prudential Financial pays out 30.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. AEGON has increased its dividend for 9 consecutive years and Prudential Financial has increased its dividend for 2 consecutive years. AEGON is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Prudential Financial beats AEGON on 14 of the 17 factors compared between the two stocks.

About AEGON

Aegon N.V. (Aegon) is an international life insurance, pensions and asset management company. The Company’s segments include the Americas, which includes the United States, Mexico and Brazil; the Netherlands; the United Kingdom; Central & Eastern Europe; Spain & Portugal; Asia, and Aegon Asset Management. It offers protection against mortality, morbidity and longevity risks, including traditional and universal life. It offers products with mortality, morbidity, and longevity risks, including traditional and universal life; mortgages; annuity products, and banking products. It offers individual protection products, such as annuities, term insurance, income protection and international/offshore bonds. It has activities in the Czech Republic, Hungary, Poland, Romania, Slovakia and Turkey. It offers life insurance marketed to high-net-worth individuals in Hong Kong and Singapore. It also offers investment products covering third-party customers, insurance-linked solutions.

About Prudential Financial

Prudential Financial, Inc., is a financial services company. The Company, through its subsidiaries, offers a range of financial products and services, which includes life insurance, annuities, retirement-related services, mutual funds and investment management. The Company’s operations consists of four divisions, which together encompass seven segments. The U.S. Retirement Solutions and Investment Management division consists of Individual Annuities, Retirement and Asset Management segments. The U.S. Individual Life and Group Insurance division consists of Individual Life and Group Insurance segments. The International Insurance division consists of International Insurance segment. The Closed Block division consists of Closed Block segment. The Company has operations in the United States, Asia, Europe and Latin America.

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